Hedrick R.
TO: Social Networking Team
FROM: Ben Hedrick
SUBJECT: Social Networking Focus Group Report
DATE: March 26, 2010

This is my focus group report which contains an interview of 5 young adults who are all a part of Gen Y. The interview addressed topics surrounding streaming entertainment and the method that the people interviewed received the bulk of their entertainment; whether that is through a streaming service or on cable. The results of this interview were surprising in that they did not report the expected findings. However, I believe that these surprising results will make this report even more valuable to you.


Focus Group Rationale

Streaming entertainment has been and continues to be on the rise for most Americans. However, it has proven to be even more vital in the lives of those people belonging to Gen Y. Despite this continued success, there are many questions concerning the future of this method of entertainment. Some companies are debating whether or not to charge for their services, while other services are not very user friendly and lack in quality. Our focus group team set out to determine the direct impact of these changes on Gen Y as well as their current thoughts on streaming entertainment. The interviews conducted by our group will prove important to Proximity to show them both the future of streaming sources as well as how Gen Y currently uses those sources and finally how they will react to the possible changes.


Setting and Participants

Each of the participants in this survey knows each other well and are all friend. I believe that this added to the quality of discussion that was presented to each topic. The interview was conducted on March 24that the home of one of the participants. The participants involved were:

· Matt, a 23 year old junior at UMBC;
· Betsy, a 24 year old graduate of UMBC;
· Lauren, a 20 year old Sophomore at Towson;
· Amanda, a 17 year old senior at Franklin High School.

Sessions Topics
During the interview, the following topics were discussed:

Willingness to switch shows that are currently watched during prime time cable to streaming
Surprisingly, the majority of the group members did not watch very much TV. due to busy school and work schedules. However, even more surprisingly, they did not stream many shows either. Lauren stated that this was due to the fact that the streaming companies usually cut 15 minutes out of the show and have poor quality. In turn, Lauren was not willing to watch the single show that she usually watches on prime time cable to streaming it. Amanda and matt however both agreed that they could easily switch from watching their favorite shows through a streaming company. Matt replied "if I can find them online, then I will switch to streaming to make it more convenient".

Where the bulk of entertainment is coming from
The bulk of entertainment viewed by the group being interviewed was through DVD and Blu ray movies. Only Amanda, who does not have a Blu ray player, received most of her entertainment through cable. Again, because of the hectic schedules held by each of the group members, watching movies through either DVD or blu ray is extremely easy being that you can pause and play it whenever you have free time. Betsy however, did the most amount of streaming in the group and said that she "viewed most of my entertainment by streaming it'.

Effect of the size of screen and the quality of the picture
After asking this question, I found that the group was divided on the issue. Three members said that the screen size and picture quality makes a difference of whether or not they watch it while two members said that it does not. The two that do not mind the size and quality of the screen were Matt and Betsy, who both enjoy watching cooking shows. The other members are all used to and enjoy watching action movies on large high definitions televisions. Chris commented that "watching certain movies and shows on a big screen makes all the difference in the world."

The effect of streaming companies making their service more user friendly with higher quality
It is not surprising that every member in the group would watch more entertainment through streaming companies if they improved ease of use and the quality of the picture. Amanda was the only group member that has never streamed any type of entertainment and did not know how to use it. However, each member in the group realized the great value in being able to watch their favorite shows whenever it was convenient for them to do so without worrying about missing the prime time showing.

The willingness of Gen Y to pay for these services
Every member of the group stated that they would not be willing to pay for these services. Each member believed that if they had to pay for streaming services, that it would be more worth their while to just catch it on cable. Even though with busy schedules this would be difficult, they would make time for their favorite shows.

Sessions Findings
From this interview, the main points that were discovered were:

· A very small percentage of Gen Y does not use streaming to view their entertainment;
· Gen Y is concerned with the quality of picture offered by streaming companies;
· If streaming companies improve their product, there will be increases demand for it from Gen Y;
· Gen Y is not willing to pay for streaming capabilities.

These findings show that there is currently a relatively large demand for streaming content with Gen Y; however, this demand could be much larger. The many questions concerning the future of streaming companies as well as the user friendliness and quality are all major hold backs for this market. Inversely, if streaming companies should decide to address these concerns, this interview has shown that the demand for streaming content by Gen Y will continue to increase.